The US dollar is rallying on Wednesday afternoon after the Federal Reserve lower interest rates for the third
The US dollar is rallying on Wednesday afternoon after the Federal Reserve lower interest rates for the third time this yr. However the huge information popping out of the Federal Open Market Committee (FOMC) coverage assembly was the central financial institution indicating that it’s hitting the pause button on price cuts. The third-quarter gross home product (GDP) was additionally in the highlight main as much as the October assembly.
The Fed slashed rates by 25 basis points to a target rate of 1.50% to 1.75%, which is the third price lower in 2019. This matches final month’s dot-plot that charted three price cuts this yr. The Fed did sign that it’s going to pause on price cuts to assess the US financial system earlier than appearing once more.
The central financial institution mentioned that it agreed to a price lower to defend the world’s largest financial system from the crippling commerce battle with China that has impacted each home and world financial development. However the Fed does imagine that the US financial system is “rising at a reasonable price.” It additionally mentioned in its assertion that “job positive factors have been strong” and “the unemployment price has remained low.”
The vote was eight to two, with Boston Fed Financial institution President Eric Rosengren and Kansas Metropolis Fed Financial institution President Esther George the lone dissenters. They argued that the financial system is powerful sufficient…